Child Trust Funds

Where to get advice on investing your child's nest egg

If you have had a baby since 1st September 2002, the Government will have given you a sum of money to invest on your child's behalf. The money cannot be used until your child is 18 years old. Gordon Brown envisages that your child will use the nest-egg to spend on education or training however they can spend it on anything they like.

Once you are registered for Child Tax Credit you recieved a voucher for £250. Families on very low incomes will receive extra money.

For information about child trust funds your first port of call should be the official website www.childtrustfunds.org.uk, the Inland Revenue's official website for Child Trust Funds.

Some points to bear in mind. Remember to consider any information given on any website, newspaper, magazine, television programme or anywhere else in the media as a suggestion only. The advice they make comes with no guarantees or promises. For impartial advice given with the protection of the Financial Services Authority you should use an Independent Financial Advisor. Rememember that much 'advice' may be offered by organisations who wish you to invest with them, so always check the source of any information which you use to make a decision.

The big question will be where to invest the money. Go for a savings account, a stockmarket based investment or leave it with the Inland Revenue's own Stakeholder account? Below are some links to advice, suggestions and information on where to invest the money.

• 92% of Parents are Wrong!
  Why you should invest your CTF in shares, from The Motley Fool.
• Transcript of Money Box Live - 7 FEBRUARY 2005
  Radio 4 Personal Finance programme, talking about many aspects of CTFs and investing for children. Bit hard going to read but full of interesting points to consider.
• Money Saving Expert
  Martin Lewis is a financial journalist and runs MoneySavingExpert.com to help you save money, get the best deals, spend and invest your money wisely. Here are his thoughts on Child Trust Funds.

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